Measuring the Natural Rate of Interest: The Role of Inflation Expectations
Abstract: The "natural" or equilibrium real rate of interest is an important concept in macroeconomics. On the one hand, the natural (real) rate provides a description of the real interest rate path consistent with the eventual full capacity of utilization of available resources in the context of low and stable inflation.
Part of Series: FEDS Notes
Publication Date: 2020-06-19